Emmanuel Kehinde, Ilorin
A Chartered Tax Professional, Dr. Francis U. Ubani, has said that to accelerate Nigeria’s development, there is the need to unlock the Eastern Nigeria Corridor economically.
He stated that reopening the Eastern Nigeria Corridor would create a third trade route within Nigeria’s Eastern flank and Central Africa Countries.
He stated that the Central Africa includes Eleven (11) Countries namely: Angola, Chad, Equatorial Guinea, Gabon, Cameroon, the Central African Republic, the Democratic Republic of Congo, the Republic of Congo, Rwanda, and Sao Tome and Principe.
Ubani who also is a tax consultant added that the overall economic benefits to the Eastern Nigeria Corridor States’ would be substantial.
These was contained in a statement on Wednesday titled: The Eastern Nigerian Economy– Beyond The Tax Reform Bills: The Main Issues and Sundry Things Therein That You Need To Know.”
According to him, as it stands now, it appears that the Tax Reform Bills mostly benefits Western Nigeria Economic Corridor States.’
He opined that the Eastern Nigeria Economic Corridor which extends from the right flank of the Atlantic Coast, through to the North-East of Nigeria verge, is left unused and/or to waste.
He noted that this entire area was economically vibrant and importantly dynamic, and was the major economic corridor before the Civil War.
He added that it also played a very critical role and contributed greatly to the Nigerian economy before the advent of oil, with very active and bustling seaports, an international airport, and very effective and busy railway system stretching from Port-Harcourt, all the way through the South-East, Middle-Belt, North-East and terminates in Maiduguri, Borno State.
Ubani said: “Having effectively blocked the Eastern Nigeria Corridor economically, and leaving only the oil and gas allocations driving the economy, tax revenue becomes a mirage. It is therefore very difficult for the States in the Eastern Nigeria Economic Corridor to create jobs and improve their tax revenue contributions to the Federal Government.
“On the other hand, the States in the Western Nigeria Economic Corridor which is the left flank of the Atlantic Coast, through to the North-West, with Two (2) International Airports, Two (2) Seaports, and functional Railway Services, has a huge potential to create jobs and generate tax revenue and improve their tax contributions to the Federal Government.
“The above-mentioned factors automatically forced foreign companies and Nigerians from the Eastern Nigeria Corridor extraction, to relocate to the Western Nigeria Corridor; Lagos and surrounding States for ease of doing business. Just visualise someone traveling all the way from Calabar to Lagos, just to board a plane going outside Nigeria. As a company operating in the Eastern Nigeria Corridor, how do you imagine telling your foreign partners to book another flight to the State where your Head Office is located, after a long flight to Lagos (Western Nigeria) from the foreign country and why not just move your company to Lagos for convenience?”
He added: “No foreign embassy would leave a State or Region with functional International Airport to build their visa centers in a State or Region where there is none, it is just not possible and that is why they are all located in Lagos and Abuja.
“Take a look at all the International Oil Companies operating in the Eastern Nigeria Corridor of the Country, their Head Offices are all in Lagos. That is the same reason they pay taxes to Lagos State.
“The Eastern Nigeria Corridor States’ conversation and appeal should focus on reopening the Eastern Nigeria Economic Corridor, and not withdrawing the Tax Reform Bills.
“Think of the huge benefits that would be derived from the Middle-Belt, and North-East farmers for not having to transport their produce through very poor roads, facing multiple police checkpoints extortion & high energy costs. However, with a functional Railway System Arrangement in place, this would reduce the unnecessary strain associated with road transportation, boost productivity, effective distribution, and lower food prices nationwide.
“Again think of importers from the Eastern Nigeria Corridor States not having to clear their goods and pay Lagos State just to get their goods out of the seaport in Lagos, regardless of their location, then carrying them through very rough roads like the East-West Road. But with a functional Onitsha, Calabar, Port Harcourt, and Warri seaports nearby, they could be importing directly, and ensuring that every day to day and/or essential commodities are made more affordable to Nigerians.
“There would be more attraction for establishment of industrial, manufacturing, agricultural, and distribution companies that would take advantage and open in these areas due to close and nearness to the seaports for import & export. These activities would mean more tax revenue and a larger tax allocation for the Eastern Nigeria Corridor States’.
“The Central African Countries trading route would bounce back and thrive again with the resultant effect of more tax revenue for the Eastern Nigeria Corridor States’. Many people may not know that Nigeria retains the gateway to a waterway connecting at least Nine (9) Countries. The River Niger in the Eastern Nigeria Corridor, flows through West and Central Africa Countries, and was regularly and constantly used by the colonial expatriates’ as a significant and key trading route during the slave trade era.”